A Simple Random Sample of 100 Bags of Tortilla Chips

question 2

Multiple Choice

A simple random sample of 100 bags of tortilla chips produced at Plant A is selected every hour for quality control.In the current sample,18 bags had more chips (measured in weight) than the labeled quantity.This sample information is being compared to data collected at Plant B.In the current sample of 100 bags of chips from Plant B,12 bags had more chips than the labeled quantity.Let represent the plus four estimate of the difference in the two proportions.What is the value of the standard error of ?

• A)0.0384
• B)0.0503
• C)0.0508
• D)0.0604

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Definitions:

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to minimizing its costs.

Long-Run ATC

The average total cost of production when all inputs, including capital, are variable and the scale of production can change.

Diseconomies of Scale

The phenomenon where operational costs per unit increase as the output increases, often due to inefficiencies or management challenges.

Natural Monopoly

A market structure where a single supplier is most efficient in producing or providing goods or services due to high fixed or startup costs, making competition less viable.